Greenhouse Gas Emissions Reporting and Impression Management: An Assessment of Sustainability Reports from the Energy Sector

Abstract

This study investigates information related to emissions disclosed in the sustainability reports by ten energy companies under the Global Reporting Initiative (GRI) framework over three years (n = 30). Based on the content analysis of 30 sustainability reports, this study explores the impression management (IM) strategies employed in climate disclosure to maintain the corporate image and its social legitimacy. It contributes to the literature on environmental disclosure by revealing gaps in external auditing procedures to ensure the quality and inclusiveness of greenhouse gas (GHG) emission data. Specifically, the study shows significant non-compliance with emission disclosure requirements per the GRI standards in 27 of the 30 reports certified by an external auditor. Furthermore, throughout the study, all organizations evaluated tend to report increasingly confounding information, which was reflected by the concealment of data on measurement and methodology used. Through the analysis, seven IM strategies were identified to maintain corporate legitimacy. In particular, the two main assertive techniques are used to enhance corporate image concerning company commitment towards climate issues: (1) self-promotion, representing self-enhancement and self-entitlement, and (2) exemplification tactic. Meanwhile, five defensive techniques were employed to justify the negative aspects of company’s activities (by minimising the impact of (3) emissions, (4) rationalisation, and (5) abstraction) or conceal information ((6) strategic omission and (7) manipulation of numbers). The study demonstrates the lack of transparency represented in such reports, considering its significant effect on stakeholders’ ability to evaluate the actual impact of corporate performance on climate.